Press Release
Walgreens Agrees to Pay Alaska $65,076.40 in a Settlement to Resolve Allegations that It Billed the Government for Uncollected Prescriptions
February 24, 2025
(Anchorage, AK) – The State of Alaska has joined the United States, the District of Colombia, and 30 other states in settling allegations against Walgreens Boots Alliance, Inc. and Walgreen Co. (together, Walgreens). Under the terms of the agreement, Walgreens—which operates one of the largest retail pharmacy chains in the country from its headquarters in Deerfield, Illinois—will pay $97.8 million to resolve allegations that it unlawfully billed government health care programs for prescriptions that were never collected or otherwise received by patients.
The settlement agreement will resolve allegations set forth in two qui tam lawsuits: United States ex rel. Turck, et al. v. Walgreens Boots Alliance, Inc., et al., No. 4:19-cv-315 (E.D. Tex. filed Apr. 26, 2019); and United States, et al. ex rel. Jacob v. Walgreens Boots Alliance, Inc., No. 8:20-cv-858-T-60TGW (M.D. Fla. filed Apr. 23, 2020). These lawsuits specifically allege that between 2009 and 2020, Walgreens unlawfully billed Medicare, Medicaid, and other government health care programs for prescriptions drugs that were never picked up by beneficiaries. As a result of this unlawful conduct, Walgreens received tens of millions of dollars for uncollected prescriptions that it never actually provided to patients.
After the suits were filed, Walgreens implemented enhancements to its billing systems designed to prevent any future unlawful billing for uncollected prescriptions.
Under the terms of the settlement agreement, Walgreens received credit for self-disclosing certain claims, and for previously refunding $66.3 million in connection with the settled claims. The total recovery for all Medicaid programs under the settlement is $9.6 million. Of that amount, Alaska will receive $65,076.40 in restitution and other recoveries.
A National Association of Medicaid Fraud Control Units (NAMFCU) Team investigated the allegations in conjunction with the Department of Justice and United States Attorneys’ Offices in Texas and Florida. The NAMFCU Team included representatives from the respective Office of the Attorney General for the states of Wisconsin, California, Texas, Maine, Oregon, and Massachusetts.
*By CFR the following is required to be attached to MFCU press releases:
*The Alaska MFCU is part of the Alaska Department of Law and is located in Anchorage. It is responsible for investigating and prosecuting Medicaid fraud, abuse, neglect, and financial exploitation of patients in any facility that accepts Medicaid funds. The unit is 75% federally funded by the U.S. Department of Health and Human Services under a grant award totaling $1,947,225.66 for FY 2025. The remaining 25%, totaling $649,075.22 is funded by the State of Alaska. Citizens with information about suspected medical assistance fraud, patient abuse or neglect are encouraged to use the Alaska MFCU online complaint formor to contact the unit at (907) 269-6279.
CONTACT: Heather Nobrega, Director, Medicaid Fraud Control Unit
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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.